AIMING HIGHER IN 2016 Q4 2015 p u d 12 February 2016 Contents - PowerPoint PPT Presentation

, AIMING HIGHER IN 2016 Q4 2015 p u d 12 February 2016

Contents • Overview • Q4 and year-end 2015 • Financial leverage • Outlook 2016 • Strategy, goals and priorities • Appendix: EBIT per BU The statements about the future in this announcement contain an element of risk and uncertainty, both in general and specific terms, and this means that actual developments may diverge considerably from the statements about the future. 2 2

Aiming higher from record 2015 • In 2015, EBITDA was raised by 42% to DKK 2,041m – the main drivers of the transition to a higher earnings level were: EBITDA before special items DKK bn • Resolution of overcapacity on Channel 2.5 • Improved passenger mix and volumes EBITDA improved by • Successful scrubber strategy DKK 608m in 2015 2.0 • Freight volume growth in North Sea and Baltic Sea • New, major logistics contracts 1.5 • Continued topline focus and efficiency projects underpinned performance 1.0 • Q4 EBITDA increased by 33% to DKK 418m with continued 0.5 strong performance in Channel and Baltic Sea • DKK 950m distribution to shareholders planned for 2016 0.0 2012 2013 2014 2015 FC 2016 • EBITDA outlook for 2016 is DKK 2,100-2,300m (DKK 2,041m) 3 3

Q4 2015 – EBITDA up by 33% to DKK 418m EBITDA before special items, Q4 2015 DKK m Margin: 12.6% • 12% higher freight shipping volumes and 450 11% more passengers Margin: 10.3% 350 • Earnings increased in 4 of 5 Shipping 385 250 business units: Channel and Baltic Sea 284 150 strongest performers 50 65 58 • Passenger impacted by extra costs in Q4 -28 -31 due to cancellation of departures -50 Q4 2014 Q4 2015 Logistics Division Shipping Division Non-allocated • Higher activity levels in most areas in Nordic and Continent leading to increased EBITDA before special items per quarter earnings DKK m 900 800 • Performance improved in temperature- 700 controlled logistics activities in UK & 600 500 Ireland 400 300 200 100 0 4 Q1 Q2 Q3 Q4 4 2013 2014 2015

Q4 2015 in numbers Change Change DKK m 1 Q4 15 Q4 14 vs LY % • Revenue growth of 10% adjusted for REVENUE 3,324 3,059 266 9% closure of routes in 2014 EBITDA BEFORE SI 418 314 104 33% margin, % 12.6 10.3 2.3 n.a. P/L associates 0 -5 5 n.a. • EBITDA includes a number of one-off Gain/loss asset sales 3 6 -3 -54% operating costs, particularly in the Depreciations -220 -202 -18 9% Channel, Passenger and Logistics EBIT BEFORE SI 201 113 88 78% business units margin, % 6.0 3.7 2.3 n.a. Special Items -21 -39 18 n.a. • Increase in depreciations mainly due to EBIT 180 74 106 143% scrubber installations and additional Finance -23 -38 15 n.a. depreciation on ship held for sale PBT BEFORE SI 178 75 103 137% PBT 157 36 121 337% • Lower net interest cost and a decrease in EMPLOYEES avg., no. 6,616 6,363 253 4% bank fees reduced finance cost INVESTED CAPITAL 8,363 8,633 -270 -3% ROIC LTM ex. SI, % 13.7 8.0 5.7 n.a. NIBD 1,773 2,468 -695 -28% NIBD/EBITDA, times 0.9 1.7 -0.8 n.a. SOLVENCY, % 52 50 2 n.a. SI: Special items. PBT: Profit before tax. NIBD: Net interest-bearing debt. 5 1: Roundings may cause variances in sums 5

Full-year 2015 in numbers Change Change DKKm 2015 2014 vs LY % • Reported revenue growth of 5%. 7% REVENUE 13,474 12,779 695 5% growth adjusted for closure of routes and EBITDA BEFORE SI 2,041 1,433 608 42% acquisitions in 2014 margin, % 15.1 11.2 3.9 n.a. P/L associates -12 25 -37 n.a. • Increase in depreciations mainly due to Sale of assets 5 9 -4 -46% full-year impact of freight newbuildings, Depreciations -835 -772 -63 8% scrubber installations and acquisitions EBIT BEFORE SI 1,199 695 504 72% margin, % 8.9 5.4 3.5 n.a. Special Items -36 -70 34 n.a. • ROIC increased to 13.7% EBIT 1,164 626 538 86% Finance -121 -124 3 -3% • Free cash flow of DKK 1.6bn following PBT BEFORE SI 1,078 571 507 89% positive impact from a reduction in PBT 1,043 502 541 108% working capital of DKK 199m and Tax -32 -68 36 -53% investments of DKK 571m NET PROFIT 1,011 434 577 133% • Financial leverage reduced to 0.9x EMPLOYEES avg., no. 6,616 6,363 253 4% FREE CASH FLOW 1,637 329 1,308 398% through both lower NIBD and higher ROIC ex. SI, % 13.7 8.0 5.7 n.a. EBITDA NIBD/EBITDA, times 0.9 1.7 -0.8 n.a. SOLVENCY, % 52 50 2.0 n.a. 6 SI: Special items. PBT: Profit before tax 6 1: Roundings may cause variances in sums

Higher earnings level raises planned distribution to DKK 950m • NIBD/EBITDA was 0.9x at year-end 2015 vs long- DKK m 2016 2015 2014 term leverage target of NIBD/EBITDA of 2.0-3.0x Planned* dividend per share, DKK 5.0 5.4 2.8 Planned* dividend 297 326 177 • Board of Directors plan to distribute a total of Buyback of shares 650 401 295 DKK 950m to shareholders: a dividend of DKK Distribution to shareholders 947 727 472 300m and a share buyback of DKK 650m *Planned refers only to 2016 • Proposed dividend of DKK 3.00 to be paid in April. DKK 2.00 to be proposed and paid in August NIBD/EBITDA • Share buyback consists of two programmes: Target leverage 2.0 • DKK 400m with completion 24 February 1.8 1.8 1.8 2016, auction process 1.6 1.7 1.7 1.4 • DKK 250m with completion latest 17 August Times 1.2 2016 1.0 0.8 0.9 0.6 • Board of Directors continually review capital 0.4 structure vs earnings and investments, including 0.2 strategic acquisitions 0.0 2011 2012 2013 2014 2015 7 7

EBITDA outlook for 2016 of DKK 2.1-2.3bn • Economic recovery in Europe expected to continue at moderate pace in 2016 NEW OUTLOOK 2016 • Freight and passenger volumes are consequently • Revenue up by around 6%, expected to continue to grow in 2016, though at a lower pace than in 2015 excluding revenue from bunker surcharges • Pricing environment expected to remain competitive • EBITDA of DKK 2.1-2.3bn • Revenue increase of around 6% expected, excluding (DKK 2,04bn) revenue from bunker surcharges • Shipping Division: DKK 1,950-2,125m • Logistics Division: DKK 250-275m • Capacity expansion through delivery of two Channel • Non-allocated items: DKK -100m ferries and lengthening of a freight ship – total investments of DKK 1.6bn expected, including DKK • Investments of DKK 1.6bn 900m for Channel ferries • Delivery of Channel ferries ‘non - cash’ until such time that Eurotunnel may decide to exercise their put option on the ferries 8 8

2016 outlook: major performance drivers Certain/Likely Expected Uncertain Macro drivers • Capacity expansion: • Freight shipping • Channel competitor • UK economy – Channel, North Sea volume growth of 8- dynamics after slowdown? 10% deployment of • Capacity reduction: upgraded ferries • Brexit referendum Baltic Sea • Passenger volume growth of 6-8% • Competitor actions • Swedish economy – Revenue increase pick up? • from new logistics • Competitive pricing • Impact of stock contracts environment market setback on • Norwegian economy general economy – slowdown? • Bunker cost savings in Passenger Possible impacts from Russian market • • migration and demand set to remain • Logistics earnings terrorist attacks ‘zero’ boost from new contracts • Changes in oil price and exchange rates 9 9

Strategy, goals and priorities DFDS’ strategy drivers:  People: succession planning, talent programme, transformation office • The DFDS Way: Customer focus and continuous improvement  The DFDS Way: further development of operating model • Network strength: Expand to leverage operating model  Tonnage: strategy development and renewal decisions • Integrated shipping and logistics operations: Utilisation of tonnage  Digital: business model development and • Financial strength and performance: implementation of next initiatives Reliable partner  Market coverage: gain synergies from • ROIC target of 10% across business cycle expansion of route network and logistics activities through acquisitions  Financial performance: continue from Customer Contin inuous Leveragin ing Performance e Best t practic tice driven en improvemen ent scale culture new higher level 10 10

AIMING HIGHER IN 2016 Q&A . 11

Appendix: EBIT per BU Q4 2015 • North Sea: 8.9%* higher freight volumes. DFDS Group EBIT development Q4 2015 Continued high UK-Continent market growth. DKK m 220 • Baltic Sea: 4.4% higher freight volumes. Russian 210 route end of Q3 converted to a slot charter 200 5 -7 7 • Passenger: Copenhagen-Oslo negatively 190 impacted by cancellation of departures in 180 Christmas high season due to bad weather 170 64 160 • Channel: 16.4% higher freight volumes, 16.6% 201 150 more passengers. Volumes boosted by closure of competing ferry route and two-ship operation on 140 -15 23 Dover-Calais 130 120 10 • Logistics Division: Higher result in Nordic and 110 113 Continent due to higher voumes. UK & Ireland 100 improved earnings of the temperature-controlled activities, offset by losses related to rail 12 12 * Adjusted for route closures